Home › Forums › General Trade Forum › scrappage scheme …..for white goods…!!!!
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August 18, 2009 at 7:35 am #47877
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KeymasterDid anyone see….or hear as I did yesterday about The British Retail Consortium calls for a scrappage scheme to boost take-up of energy-efficient fridges and washing machines…….like with the old car idea but this time it’s the white goods ……chuck out your old reliable machine for a more unreliable energy efficient one………!!!! :rolls:
Well what do you think on this one then…….??
http://www.guardian.co.uk/business/2009 … hite-goods
canufixit………
August 18, 2009 at 7:58 am #294864don
ModeratorRe: scrappage scheme …..for white goods…!!!!
Hi canufixit
Cracking idea if you ask me. It will certainly stimulate not only our industry but also the economy. This could also be a lifeline that many of the small independant retailers have been looking for in these uncertain times.
I just hope that if it does get the green light that the BRC / government keep the operation and logistics simple or is that asking for too much :rolls:
If you want a little more reading, Ken posted this on the homepage yesterday and then there was this article in the ERT mag last week.
August 18, 2009 at 8:26 am #294865kwatt
KeymasterRe: scrappage scheme …..for white goods…!!!!
don wrote:Cracking idea if you ask me. It will certainly stimulate not only our industry but also the economy. This could also be a lifeline that many of the small independant retailers have been looking for in these uncertain times.
Really?
Did nobody consider the counter effects of such a move or the fact that it would have little to no effect on sales outside what would have been replaced anyway?
The only effect it may have on sales per say, is that people might spend a bit more, but I doubt it, they’d likely just count their chickens for the tax refund.
In the end, that’s what it is, a tax refund.
The tax still has to be paid, the government still has to find that money to meet its budget and, while it may well do you a short term favour (very “maybe”) but there will be long term pain in return as the government claws it back.
Asides from which the premise, as presented from what I’ve seen from the BRC, is ludicrous from an eco standpoint. It’s also, IMO, ludicrous from a sales standpoint, it’s unlikely to encourage much of anything.
People don’t just wake up one morning and think, “oh bother, that old washer looks a bit shabby, I think I’ll go buy a new one.”
People need a stimulus to spend on appliances, normally as they NEED to spend that money through failure or moving home. Without the stimulus to generate the interest and this isn’t it. All this is liable to be viewed as is a short term discount that just devalues the product further.
K.
August 18, 2009 at 8:47 am #294866wards
ParticipantRe: scrappage scheme …..for white goods…!!!!
might be ok in the short term for sales,however for repairs it would be a disaster,(forget having it repaired lets go buy a new one)a great deal of thought gone into this idea,i think not. :clown:
August 18, 2009 at 10:37 am #294867don
ModeratorRe: scrappage scheme …..for white goods…!!!!
I agree with what you say Ken but it could be the difference for some retailers as to whether they stay afloat or not. I know there is always the argument that the weaker ones would have failed anyway but at least they would have had a chance to survive.
Perhaps I`m just looking through my rose tinted specs in my outlook :rolls:
DonAugust 18, 2009 at 11:04 am #294868hotpnt
ParticipantRe: scrappage scheme …..for white goods…!!!!
It may well be a slight boost for some retailers, but would also send more people to the sheds, whilst killing off the already struggling repairers
August 18, 2009 at 1:04 pm #294869Martin
ParticipantRe: scrappage scheme …..for white goods…!!!!
BRC wrote:A modern, efficient fridge-freezer uses less than half the energy of a 1995 model. Over its lifetime it can pay for itself
Where do they think these things up I wonder? Less than half? Pull the other one it’s got bells on. :rolls:
The 1995 fridge freezer will still be a runner long after it’s modern counterpart hits the landfill.
Sharp dressed sales talk and nothing more………..but shush, here comes another customer through the door………..Yes madam, fridge freezer you say….now then have I got a great deal for you? 😈
August 18, 2009 at 10:23 pm #294870admin
KeymasterRe: scrappage scheme …..for white goods…!!!!
kwatt wrote:Did nobody consider the counter effects of such a move or the fact that it would have little to no effect on sales outside what would have been replaced anyway?
The only effect it may have on sales per say, is that people might spend a bit more, but I doubt it, they’d likely just count their chickens for the tax refund.
In the end, that’s what it is, a tax refund.
The tax still has to be paid, the government still has to find that money to meet its budget and, while it may well do you a short term favour (very “maybe”) but there will be long term pain in return as the government claws it back.
Asides from which the premise, as presented from what I’ve seen from the BRC, is ludicrous from an eco standpoint. It’s also, IMO, ludicrous from a sales standpoint, it’s unlikely to encourage much of anything.
People don’t just wake up one morning and think, “oh bother, that old washer looks a bit shabby, I think I’ll go buy a new one.”
People need a stimulus to spend on appliances, normally as they NEED to spend that money through failure or moving home. Without the stimulus to generate the interest and this isn’t it. All this is liable to be viewed as is a short term discount that just devalues the product further.
K.
me thinks the same as you on this one………..if it is not broken then why get another machine thats only going to have a small amount of money taken off ……..
canufixit……
August 18, 2009 at 11:05 pm #294871kwatt
KeymasterRe: scrappage scheme …..for white goods…!!!!
Quite.
15{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} off something I don’t need to buy or really want to buy isn’t really a bargain and unlikely to inspire me to part with my cash.
It’s simple economics.
If it’s 15{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} off a cup of Costa coffee and, I happen to be strolling past a Costa, I may think that’s a good offer, feel like a coffee and go there instead of Starbucks down the ways a bit. Other than that, it’s a waste of time and government money as it’s not going to make me buy something I don’t need or want to buy.
But here, what’s this? Starbucks has the same offer on.. oh well then, I’ll go to Starbucks as the coffee is better and I get loyalty points. Choose your own reason if you wish.
They have to apply it to all, so it’s a level playing field. Currys, Comet and all the others would have exactly the same offer, the market ratio splits would be the same, so no change. The only change is the customer thinks they get a deal and the product gets devalued.
Other than that, status quo.
If they offer me 15{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} off electricity I’ll just take the discount or, use more as it’s cheaper. I have to buy that anyway.
But for the BRC it’s a PR exercise. They shout about doing something for the retail trade then bemoan the fact that nobody listened to them. But, they had this great scheme that would have gotten loads of business for all the retailer. :rolls:
They know they won’t get anywhere on this, but that’s not the point of it.
A poorly thought out plan that goes nowhere IMO.
K.
August 18, 2009 at 11:36 pm #294872leavemetogetonwithit
ParticipantRe: scrappage scheme …..for white goods…!!!!
It’s the economy, stupid.
Gotta get it movin’ anyhow we can. So chant the mantra and believe, “Buy more stuff! Buy more stuff!”
😆
Mike.August 19, 2009 at 7:22 am #294873Alex
ParticipantRe: scrappage scheme …..for white goods…!!!!
leavemetogetonwithit wrote:It’s the economy, stupid.
Gotta get it movin’ anyhow we can. So chant the mantra and believe, “Buy more stuff! Buy more stuff!”
😆 Mike.And get factories in China and Eastern Europe to turn out yet more rubbish. The only change this will generate, if at all, will be the footfall of customers in the sheds. The admin will be a nightmare, and OUR economy will gain sweet F.A.
Would be different if we actually made something!
Alex
August 19, 2009 at 10:42 am #294874andy_art_trigg
ParticipantRe: scrappage scheme …..for white goods…!!!!
I wrote an article on this subject some weeks back but before there was any mention of a scrapage scheme. I questioned the whole concept of throwing away working appliances and replacing them with mostly inferior quality ones which may not last very long – at great expense.
Spending hundreds of pounds on a new appliance in order to save (as in the case of a 10 year old washing machine) £5 a year on energy makes no sense to me – especially when the people telling us to do this are the people representing white goods sales.
However there is more to it than that because of water savings but I worked them out at only £6 per year currently and modern washing machines don’t seem to rinse anywhere near as well as old ones because of the greatly reduced water consumption. Then there’s Co2 saving which I found more complex and remain unsure about.
My suspicion is that this is all about meeting the EU quotas for reducing emissions and generating extra sales but expecting the public to pay for it by dumping their current appliance. Most people aren’t likely to see any saving at at all or for years when you take into account their expense in buying it a few years before they would be forced to naturally upon its demise.
If the government is going to subsidise it then it puts a different slant on things but I’m still not sure it makes true environmental sense to dump millions of appliances that are working perfectly ok. If I’ve got it wrong I’m happy to alter my article.
Do we really need to dump our old inefficient appliances to save money and the world?
I hope I haven’t got things wrong. It is no doubt a complex matter. The case for refrigeration may be stronger as potential savings should be higher.
August 19, 2009 at 2:04 pm #294875admin
KeymasterRe: scrappage scheme …..for white goods…!!!!
andy_art_trigg
i think your spot on …………on what you have said……its all a load of tosh……..cars one thing …….white goods ..well…….is an all new ball game .
save the world……….mmmmmmm.?..try and look at otherways…..that DO !
CANUFIXIT……..August 19, 2009 at 2:14 pm #294876boselecta
ParticipantYes its normally a toss up for customers as to get a new machine or get a repair.
I can see this tipping customers towards a new machine. “Well get some money off if we get a new one!”, they will be saying.
ah doooooooooomAugust 19, 2009 at 5:57 pm #294877Madmac
ParticipantRe: scrappage scheme …..for white goods…!!!!
I think the slight flaw in the BRC’s comparison with the car scrappage scheme is the simple fact that cars in general have probably never been as well built as they are now, a life of 12 or more years should be a breeze for the humblest of cars these days.
So on balance that brand new Kia the old biddy swapped her skanky old Fiesta for might just make sense from an environmental viewpoint, what with its advanced emission control systems & much lower Co2 output, it is likely to remain a useful product for a decade or more.
Imagine she does the same with her 20 odd year old Washcraft Zanussi, the nice sales excecutive at Comet sets her up with the modern equivalent.. oh dear :rolls: 3 year lifespan now on lux group stuff in my experience.Its all about money of course,always will be in a capitalist society, but i just wish the BRC would drop the greenwash & call a spade a spade. :rolls:
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